shery: welcome to daybreak asia. we are counting down to asia's major market opens. haidi: the top stories, asia

stocks set to open lower as wall street rallied by last week's fed pivot. the two-year yield notching a 10 point basis move. the largest u.s. memory chipmaker giving a strong forecast. tiktok owner bytedance set to surge more than $10 billion, potentially overtaking its rival tencent. just waiting for that staggered session to get underway but we are expecting a bit of downside. more than .5% lower if that lead from wall street is anything to go by we had quite a challenging session for highflying stocks. one of their worst days and months wednesday. wall street warning of the pullback on the rally ignited by the ever popular and pretty busy fed pivot trade we saw kicking off in earnest last week in its latest iteration.

the lack of drivers in the last hour as we head into the holidays starting to become evident. we are still close to some pretty significant milestones when it comes to australian markets. about 2% away from an all-time high. the record close in august 2021 is what we are looking at. at the moment we are at the highest levels since february of 2023. we're also watching the currency, a bit of upside thanks to that pullback that we saw in the u.s. dollar previously. quite a bit of challenges ahead for the australian markets as we get into 2024 with that macroenvironment, whether the rba will follow on the back of that fed pivot is still very much in question. kiwi stocks have turned around. we saw some pretty significant losses were not by about .1%. watching the immigration story

very closely. we continue to see immigration numbers confounding forecasters, and that will play into the broader inflation picture as well as what it means potentially for the rbnz as well. wednesday talking about the risk of high immigration, and that may mean the central bank may need to be more restrictive for longer when it comes to their policy, and we spoke about that with the new zealand prime minister yesterday as well. shery: take a look at how u.s. features are coming online in the asian session. we are seeing indications upwards after the s&p 500 already saw the worst day since september. we had fed ex being one of those big losers and that is not great news given we of course see fedex as a bellwether for u.s. economic outlook, and it fell by the most in over a year on that profit mess. we are also watching comments from the philadelphia fed president pushing back on immediate rate cuts but perhaps with a softer tone than his peers we have heard from in the

last few days after the fomc statement and after chair powell doubled down on this dovish rhetoric. take a look at crude prices, continuing to be under pressure. .7%, after we saw that buildup in stock and record production. that has offset risks coming from the disruptions in the red sea. and treasuries rallied in the new york session. we really had that sparked by 10-year gilts that let the global bond rally given that we saw that slow down in u.k. inflation. it is really all about the data, isn't it? because we are also trying to digest consumer confidence numbers. it seems americans are really feeling good. we are seeing that there consumer confidence rose by the most since early 2021. they seem to be confident despite the fact that they are having concerns about a potential recession. of course it is not just consumer confidence we are watching. we will get more indications in the next few days with

thursday's gdp print, personal consumption expenditures, and perhaps a little bit more data and insight from the university of michigan's consumer sentiment index as well. haidi: yeah. and of course we continue to watch the fed speak in terms of how the markets are going to continue pushing ahead with this fed pivot expectation. the bank of philadelphia president saying yes, rates should come down but not immediately, saying it is important to lower rates, seen as being more supportive as i cut -- of a cut. it is more of a softer pushback against expectations of early 2024 cuts than some of his peers. let's get some more with garfield reynolds. we continue to watch that and this idea that the eagerness to stick a soft landing, that the

fed, in terms of loosening financial conditions, may be making their own jobs harder. how does the market potential he navigate around that risk? garfield: mostly the market has been very focused the last couple of weeks on the idea that it is time to party because the fed has stopped taking the punch bowl away. mixing metaphors, there. but now we have reached the stage where some doubts have started to creep in at times. it is interesting, the previous couple of days we did not see bonds having a lot of fun. they were kind of stark. they were maybe a little spooked by the tick up in oil prices because of problems in the middle east. meanwhile, equities kept climbing towards fresh records. then overnight towards the end of the day in particular we had this rapid shift in equities anyway.

the bond rally had been building to the day and then accelerated especially at the front end. so yesterday was a day when concerns about the potential that they will be a hard landing for economies really took off. and that sent two-year u.s. yields down by 10 basis points, and i don't think you could argue that that is actually what drove the sudden drop in equities, but that sudden drop in equities was of a pice. it's a reminder there are two-sided risks in the current situation. shery: what will drive markets towards year-end? we have the biggies out of the way already. garfield: well, and we do have that one last big release you mentioned, the pce. although even then, it is hard to imagine what could come in that that would seriously just look at the market expectation that the fed will pivot towards cuts. i think the bigger risk is you

might get a softer than expected print that would set off further bets on rate cuts. and at the moment you have this very sweet spot for bonds because you have got the expectation the fed is going to cut and you also have the potential that people are going to want to take cash out of positions and just pocket in bonds, which look pretty safe and are offering decent yields right now. shery: garfield reynolds there. our next guest is also concerned as to why the fed flipped 180 degrees on their higher for longer narrative. with us now is robert schein. robert, great to have you with us. of course a reason why the fed would pivot is so important. is it a benign landscape where inflation is being reined in or are we headed for economic catastrophe? robert: it was really interesting. the 180 fed pivot is kind of

curious because the markets by way of the bond market has been front running the fed. we have seen yields come in, bond market rally. as soon as a couple months ago the fed basically started saying listen, we are going to pivot. it now accelerated all risk assets. a lot of program trading came in and a lot of momentum is building. that is concerning. that is something where investors have to say listen, we believe the santa claus reality is still intact between now and year-end, because all that money on the sidelines piling up. however, what does the fed see that we don't? that is the question at this moment. shery: what happens next once that pivot comes? do we still continue a rally when we are already soared this high? robert: going back to that real quick, the fed have really taken their optionality off the table. like we said, we have been long

believers of higher for longer. the fed will have to hold along -- the line as long as they possibly could. they basically just pivoted. are they supporting the markets going into the 2024 election year? are they seeing something economically that is not too conducive to what they like moving forward? so we have to really pay attention to the fed, but you know as well as i do, do not fight the fed. shery: where should you invest in this environment? robert: we like 60/40 asset allocation, but of that fixed income, you want to look at alternative investments. specifically, not the index. you want to look at individual names. health care, let's say, there are some great names in the health care industry. we even like the tech, the ai play will still continue moving forward. one name we like is eli will that eli lilly. obviously it is a big weight loss drug.

it's going to go to $100 billion, so we can see that stock double over the next few years. over $30 billion just for the u.s. alone in terms of health care cost to our system. it is not just a weight loss drug, it is not just a vanity drug, it is a health care resurgence, and it helps heart, alzheimer's, and a few other medical benefits. that is one of those we like in the space of health care moving forward. continuing with the ai story be also let google for a lot of reasons. shery: do you still like the magnificent seven, especially after the incredible rally we have already seen? robert: you have to parse out the magnificent seven for 2024. you can put tesla aside. i think there are some great stories there that will continue to resurge ahead, like meta, like google. google has had a turnaround internally. if you look at have -- they have wind in their sails.

we're seeing growth in ad revenues. they will benefit from that $10 billion to $15 billion in the u.s. of ad sales. we're seeing cloud computing up 22%. so google is one of those plays where if you believe like we do in the alternative -- the ai space, that's just in the very few early innings of that. shery: you mentioned the political volatility that we might see. you have consistently talked about that going into 2024. how do you hedge that? robert: you have to have cash on the sidelines. if you look at the multiples in the market, probably ahead of itself. will we continue in the first quarter of 2024? absolutely. however, keep some powder dry, take advantage of market pullbacks. if the fed basically doesn't get a report later this week or early january, some labor market

reports that can show inflation is high, 87% of the time inflation resurges. that could be the biggest risk for 2024, where the fed has to pivot again, or at least that we might have been too early to call it. shery: robert schein, good to have you with us here in the studio. haidi: stay cautious going into next year. coming up, several lawmakers urging president biden to block nippon steel's acquisition of u.s. steel. we will get the latest. first, bytedance surging, potentially overtaking its rival tencent. we have more on that next. this is bloomberg. ♪

shery: welcome back. micron shares getting a boost after the bell. the u.s. maker of memory chips has given a strong revenue forecast for the current period. it may signal the worst of an industrywide slump is over. for more let's bring in our senior tech editor nick turner. what were some of the key takeaways from these results? nick: seeing a little better demand in smartphones and pc's, which is still the main market for a memory chipmaker like micron. there also pointing to data center sales and the use of their products in ai is obviously a big theme for a lot of tech companies right now. training ai models requires more memory and they sell memory, so hopefully is a good trend for them in general. haidi: yeah, in terms of the trend, are we expecting that demand to continue to remain strong going into next year?

nick: they are essentially pointing to 2024 as the year of a rebound, for them and probably the broader industry, which is good news for samsung and sk hynix, and pc makers and smartphone makers. all of those areas have been hit pretty hard this year in terms of demand and that has been bad for everyone including apple and many of the biggest pc makers. so the hope is that they can come back this year and if ai provides more upside on top of that, all the better right company like micron. shery: given what we have seen so far, are we going to continue to see diversification efforts when it comes to going into data centers, cars, and other gadgets? nick: 100%. i think the hope ultimately is that they are not trapped in this cycle where they have these really securely ups and downs because they are tied to a few industries that tend to do that.

if they can spread their chips around to a bunch of different industries including cars, then it will be less cyclical in that way. haidi: our senior tech editor nick turner there with the latest on micron and other corporate headlines where tracking. citigroup is getting out of distress debt trading. it will move one of the key players in the market, and 20 positions will be affected. it follows the bank's recent decision to get out of usable -- citi undergoingis its biggest restructuring in decades. sources tell bloomberg that -- considering selling pioneer. they say the firm is discussing with advisors and could seek a valuation of around $1.5 billion. considerations are still at an early stage. bpea acquired and took pioneer private in 2019 in 1 $710

million revival plan. bloomberg has learned that bytedance's sales topped $110 billion this year, potentially overtaking rival tencent. let's get more from john lee out. -- john liu. john: here in china, i think you have to remember they are not going to the same challenges, bytedance. the version of their short video app is extremely popular and has shown itself to be extremely good at e-commerce. people come for the videos but they stay and spend money, and that has been increasingly clear over the years. revenue has grown the revenue -- in the avenue of 30%. that is about the same pace and grew last year. the company is not publicly traded so we don't have much insight as to how much profit that translates into. if you just look at the revenue

numbers it has become an increasingly large player, bigger than tencent, bigger than alibaba, and slowly but surely becoming the main vehicle for e-commerce in china. shery: tiktok remains unchallenged in the u.s. amid security concerns. does that affect the bytedance's strategy to grow overseas? john: tiktok is a huge part of the company. it is the face of the company on a global stage outside of china. so the ability of the company to keep tiktok operating in the united states is extremely important. it would be even more important on that day that we do get a public listing of the entity. it would tremendously affect the overall value that bytedance would get for that listing. so in that sense -- and the influence that comes with having that app in the united states makes it very, very important. haidi: they have also tried to expand beyond social media apps.

has there been much success, and we know any pathway to an ipo? john: they have tried. most recently the ended up closing down their gaming unit. that was a setback for the company. they are trying other things, ai for instance. lots of chinese companies are investing in that area. in terms of an ipo, there has been talk that potentially something in hong kong, something in the united states even. but as of yet, there is not a solid indication that a listing is coming. indeed, they have done private buybacks of shares held by employees, most recently at a valuation of slightly lower than what we had before. haidi: our greater china senior executive editor john liu with the latest on bytedance. you can get a roundup of some top stories you need to know to get your day going into today's edition of daybreak. you can find that at dayb and also on the bloomberg

anywhere app. you can customize those settings so you just get the news on the industries and assets that matter to you. this is bloomberg. ♪

shery: bloomberg has learned that warner bros. has held talks on a possible merger with paramount global, potentially combining two of the biggest media companies in the world. bloomberg's m&a michelle davis joins us now and we continue to see consolidation in media. how significant with this deal be? michelle: very significant. it would be one of the biggest media deals we have seen in the past few years. the media industry is undergoing a lot of transformation. consumers are cutting the cord, they are not cutting -- paying for tv the way they did in the

past. everyone wants streaming, and it cost a lot of money to create that content. the idea is if these two companies were to merge it would give them some scale, better ability to compete against the apples and amazons that have unlimited money and able to put money into streaming and not worry about cost the way traditional media companies have to worry. haidi: paramount is controlled by the redstone family. what we know about sherry redstone's role in this, and how it shapes the legacy point of you for that family? michelle: what we know is paramount is one of these perennial assets everyone says at some point, someone in the media industry is going to buy it. but sherry redstone and her family controls the company through national amusements. it has always been a question if they were actually open to a sale. at this point, it sounds like there have been these talks, but it is all very preliminary. it is not a certainty that she

is open to selling, or that this will sell to warner bros. discovery. but we do know that we have talked to her. she sounds like she is a little more open to a sale now than she had in the past. shery: any regulatory challenges? michelle: anytime you talk about two media companies like this is auditing there will be regulatory challenges. axios reported when they broke the news earlier that because warner bros. does not have a broadcast network, it would make a deal easier because they would be a little less overlap. one other thing to keep in mind is one or brothers is technically not able to do any deals until april 2024 because of this tax provision having to do with its at&t spinoff/merger with warner bros. discovery, that whole deal. it gave it attacks safe harbor -- a tax safe harbor, so it technically cannot transact until then.

haidi: something to watch as we head into the new year, especially after such a challenging time for the industry. michelle davis with the latest on paramount. we continue to watch these markets. we had that pullback in the greenback of course on some of the better-than-expected eco data and perhaps a pulling back of the fed pivot trade as well. we're seeing at this point really asian stocks looking like they will lose steam alongside the global rally. when it comes to currencies we are seeing a little bit of upside trading for the aussie dollar at .6734. a tiny bit of upside as we get into what really is a session that lacks a lot of major drivers as we get closer to the holidays. sterling is one we have been watching as well, lagging g10 peers. again, that inflation picture and what that means for global central banks is still paramount for these traders. looking at dollar china as well, there are still the same

concerns when it comes to the slowdown that we see in the chinese economy, whether some of these households really have the resiliency to be able to boost broader growth going into next year. dollar-yen there, we had a little bit of a move in both directions following the boj meeting, but of course standing pat. that has been holding relatively steady. a lot of those moves have been driven really by momentum in the greenback. more to come. this is bloomberg. ♪

shery: over 100 container ships are taken the long and more costly route to avoid attacks in the red sea, as iran-backed militants vow to continue targeting vessels in response of the israel hamas war.

su keenan joins us with the latest. this is really roiling the shipping industry. are we seeing any government response? su: the u.s. government is still trying to get together an international task force to somehow control the area, protect the ships. meanwhile, there is a new threat coming from the houthi rebels, saying that the u.s. -- telling the u.s. they will retaliate if the u.s. opts for military attacks on the houthi bases. they have stepped up assaults on fuel tankers and cargo ships in the red sea, also posting images online showing sophistication and high-level coordination of the attacks by drones, missiles, and assault teams. you just watched a video of a team that landed, a helicopter, on at least one cargo ship and took it over. so it's not yet clear how the u.s. will respond. in addition to forming a task force with allies, it still

says it prefers diplomacy. meanwhile, saudi arabia is worthy strikes will provoked houtis. meanwhile, shipping rates and the shares of shipping companies have been on the rise. more than 100 container ships are taking the long route around africa to avoid violence along the red sea. and while you are seeing some out of the u.s., it went into the red only after hitting the highest level for 1.5 after which -- 1.5 years, after which some investors took profits. this is having a major impact on the shipping industry. these reroutes around africa can cause delays of extra 10 days, extra costs that can cost $1 million, and insurance rates for the shipping companies, those who choose to cross the red sea, are through the roof.

so it is very much a dynamic situation with many in the shipping industry waiting to see what the u.s. military decides to do. in the meantime, they are not willing to return to crossing the red sea without a convoy or some protection along the lines of what the u.s. is proposing. haidi: these concerns about shipping disruptions potentially being offset of an oil glut we are seeing? su: we are seeing oil prices lower, trading in new york and london trading will nearly hold onto a three day winning streak. it was very volatile in new york where west texas intermediate swung roughly $2 either way before closing above $74. now under pressure in asia trading. the reason? the u.s. government data shows u.s. inventory rose again even as exports picked up. and there was record production levels. crude output hit 13.3 million

barrels a day last week, despite the fact we are number of rigs for drilling off line -- oil off-line for the second week. the pace has surprised many forecaster. one senior energy trader says the market is short and sentiment is poor. she does not think the bears, those betting that prices continue to go lower from here, are abandoning their view that the market will be imbalanced to oversupplied, and that appears to be the overarching theme still. i should point out, we typically see volatility as the volume thins out going into the end of the year with all the holidays. many analysts though see the red sea premium as starting to fade. haidi: su keenan there. let's get more when it comes to the fallout as we see these attacks on the red sea. rahul kapoor head of shipping analytics and research at s&p global commodity. always great to have you with us. su talked us through some

broader supply and demand scenarios we are dealing with. on the balance, how big of a risk is this to global tradeflow, but also shipping costs? rahul: thank you, good morning. i can say the long-standing principle of freedom of navigation is being challenged here. first and foremost it is the safety of the crew which is of most importance. and these are large commercial strips which are traveling slowly through a narrow channel and are easy targets. if you look at the numbers, we have -- [indiscernible] also as a main artery. this is very critical. it will have an economic impact. over the last few years we have

started to see geopolitical tensions, conflicts. we do remain concerned. not sure how quickly the situation can return to normal. haidi: you would want i guess for some of these scenarios to materialize. do you need to see more of a ramp-up of these attacks? what do you see as the economic risks, particularly as we start to see the impact on shipping rates? rahul: if you look at shipment over the last few days, we see divergence. hundreds of ships are being diverted. these are big companies which have announced divergence. [indiscernible] when you talk about container shipping, especially for the global supply chains, it is a web of complex networks. it is kind of unprecedented, 100

ships rerouting. we have seen days of disruption, but this is a different level. we're talking billions of dollars of cargo which will have to spend extended time at sea. that's higher inventory cost. this has to be passed on to the consumers. it's a well oiled machine. it's not going to easily come out. this will have repercussions for several months down the line. negative for everyone. demand remains soft, so that should cushion the upside to the containers. shery: is this an acceptable risk in terms of we are seeing more and more incidences of geopolitical nature and casting

risk and disruption to the industry? is there anything shipowners can do? in this instance it will take weeks before an operational task force can be on foot. rahul: indeed. uncertainty has been building up. if you look at energy, average eight billion barrels of crude passing through this. new trade routes have been established after the russia and ukraine war. that is another conflict. we have seen europe dependent on india for gasoline cargo. so what it does is it creates inefficiencies, whether it is energy supply chains or something else. it means a higher cost to consumers. cargo owners and shipping companies now have to account for higher risk premium, higher insurance cost, and a new security risk. we need that safe passage and

freedom of navigation to come back. haidi: when it comes to the outlook for next year is a mixed picture from your point of view. you are not so positive when it comes to container, and a little more constructive on dry bulk. rahul: certainly. if you look at container ship, a pretty good few years after covid. all of that demand has gone back, supply growth. demand for the next few years -- [indiscernible] that might cushion some supply growth. but demand remains very soft. supply growth in both of these segments is very low. demand is stable. all of these conflicts leads to higher. [indiscernible]

haidi: what is the biggest risk for you for next year? rahul: the red sea. for the first time we are seeing two primary canals. el niño, drought, we've already seen massive rerouting, an almost 50% cut already. now with this situation, if we see a large displace and that will have repercussions across supply chains. geopolitics remains the biggest concern, not the demand, not the supply. haidi: always great to have you with us. rahul kapoor at s&p global. shery: let's get a little more on those geopolitical stories. the biden administration is renewing efforts to prod israel to end the widescale destruction in gaza. secretary of state antony

blinken says israel's campaign needs to shift from a large-scale military attack to a more precise operation to reduce the toll on palestinian civilians. the hamas-run health ministry says israel has killed more than 19,000 palestinians in gaza. >> it is clear that the conflict will move, and needs to move, to a lower intensity phase. and we expect to see, and want to see, a shift to more targeted operations with a smaller number of forces that's really focused in on dealing with the leadership of hamas, the tunnel network. shery: china is warning the philippines that relations are now facing serious difficulties amid tensions in the south china sea. beijing accuses manila of

backing out of its commitments and causing trouble in the contested waters. foreign ministers from the countries discussed the matter wednesday after the philippine president said manila should revamp its approach in dealing with beijing's aggression. chinese president xi jinping reportedly told president biden that beijing will reunify with taiwan, though the timing is not yet decided. nbc says the conversation happened during last month's summit in san francisco. in response, republican senator lindsey graham says he is drafting sanctions to impose on china if it invades taiwan, calling the report beyond unnerving. we will have more on a special report featuring bloomberg's exclusive interviews with all three taiwanese presidential candidates. it is also available on youtube. this is bloomberg. ♪

shery: shares in u.s. steel fell after concerns mount -- the company is seeking a foreign investment review from the biden administration as a condition of its sale, but the process will be politically fraught. three lawmakers from

pennsylvania want the acquisition blocked, saying the product is essential to national security. haidi: nippon steel shares have lost ground since news of the u.s. steel point into the risks that japan's companies face in trying to lift their market value by m&a. our senior market reporter joins us now from tokyo. what do you make of the investor reaction to this plan? hideyuki: the opinion about this deal in the market seems to be divided quite sharply. you mentioned the political opposition to the deal, which of course is one issue. if you look at the stock prices of u.s. steel it is far less than the price tag nippon steel has put. that indicates serious doubt investors have about whether this deal might come through at all. that said, even if you assume

that nippon steel will manage to get this deal done, investors are worried that the japanese steelmaker may need to tap the equity market to fund the deal, even though the company said that it will rely on debt for this deal. so yes, markets, i guess it is fair to say the market is very nervous about what to expect from this deal. shery: usually, how long does it take for the markets to settle down? how have japanese stocks eventually fared after these big m&a's? hideyuki: i mean, it depends on how quickly the deal will be completed. it is really case-by-case. when you look at how japanese stocks have performed, the results are mixed.

but if you take a deeper look on how japanese companies have done following acquisition, there are more failures than success. some companies have done quite poorly. for instance -- they bought the u.s. cosmetic company more than 10 years ago but they had to sell the brand for less than half of what they paid for. and another bought an australian company, it turned out to be a very poor deal. on the other hand you have success stories, so the range of possible outcomes stretch from phenomenal success to spectacular failure. so, that is one source of

uncertainty. shery: that will be very dramatic to watch. we will continue to look forward to the market opens in japan. hideyuki sano joining us from tokyo. we have more to come. this is bloomberg. ♪ psst. hey, sarah. hi. if you had to choose, would you listen to elevator music all day or deal with payroll compliance? payroll compliance, for sure. wait. for real? switching to gusto made staying compliant much easier. on top of seamless payroll, they automatically calculate my taxes and file with the right agencies for me. can gusto help my small business with compliance too? definitely. thank you so much.

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haidi: take a look at some declines we are seeing in sydney on this thursday's session. a dry visit this time of year getting increasingly few, but what we had an terms of the handover from wall street really that global equity rally stalling. shares in asia more broadly really primed for more declines as we get into the trading session. at the moment we are only seeing two sectors in the green in australia, industrials and health care seeing modest gains. we have seen that pullback on the back of what has been a big run for the asx, a gain of eight of the past nine sessions. australian stocks heading into 2024 near an all-time high. tech shares really leading that advance in the past year thanks to the ai frenzy. energy stocks have underperformed. for more analysis let's bring in georgina mckay.

a lot of these are reflective of global trends. georgina: it has been a bit of a slog, but we have ended the year somewhere near a record which is quite amazing considering the year we have had. key takeaways, we have tech stocks leading the gains in the asx. it is pretty small waiting on the whole benchmark we have the ai hype driving that, and we are likely to see that continue. then we have the energy underperformance associated with windowing oil prices on supply concerns. and some more local things, that crazy lithium frenzy, all the deals happening which has been little rocking -- shares up 1500%. and we have had a bit of divergence in the financials which is a heavily weighted sector in the asx. we have the insurers outperforming and banks have been underperforming.

haidi: what is the outlook for next year? georgina: the outlook is it will be another grind. i think it will be all eyes on the global rate path and then obviously locally it is about what the rba will be doing and expectations are that going into the year they will be a bit of a hawkish stance until the middle of the year, and then all eyes on inflation, the consumer spending, those other things. then more sector-wise, uranium is certainly something to watch. investors have been piling money into that space. then lithium, i think it will continue with those company valuations lower. we might see a bit more m&a in that very hot space. haidi: our asia stocks reporter georgina mckay with the australian market. shery: over in japan we have seen the boj slowly listening its grip on japanese government bond yields. the country's investment firms are scrambling to prepare for an era of higher rates on volatility.

that also means the return of physical trading floors. we checked out the buzz at one brokerage in tokyo. >> the phones, cough drops, and everything in between. the action-packed trading floor is making a comeback. it looks like a scene from wall street in the 1980's. but it is 20 23 at this japanese broker. all the friends he is a result of changes to the monetary policy at the bank of japan. increasing yields on jgb's or japanese government bonds has met the return of volatility after a quiet decade under prior governor corroded -- koroda. >> compared to last year the trading volume has increased. i yell a lot. i place some snacks nearby. always replenishing my energy. kurumi: what is unique is that

unlike the u.s., the japanese bond market still relies more on humans than algorithms. that means new recruits learn the arcane art of shouting orders and using binoculars to see the latest bids and offers handwritten on a whiteboard at the other end of the trading floor. the problem is that traders familiar with the old school ways have retired or moved on to other careers. a four-decade veteran bond trader of the jgb market recalls the roller coaster of emotions and offers up some advice. >> the most important thing is never to take your eyes off the market. never run away. i know fear overtakes you on a sudden rise in interest rates but during the crisis and feeling the pain, try to endure it, and even try to enjoy it. kurumi: in 2013, he started aggressively buying jgb's to jump start the economy, but

inflation did not materialize. at the extreme, the boj owned more than 50% of the entire market, leaving little for everyone else. now current boj governor ueda is preparing a move in the opposite direction and under winding -- and unwinding a decade of using. for the traders, that means these will come in handy ahead of the expected volatility in 2024. kurumi mori, bloomberg news, tokyo. haidi: looking at stocks to watch when trading opens in korea and japan. we will watching nippon steel after u.s. steel said its proactively seeking a review from the biden administration over its sale. micron gave a strong revenue forecast. demand for their data center chips growing. samsung, sk hynix, and tokyo electron. asian crypto related stocks, bitcoin briefly jumping over

$44,000. u.s. futures after what was a lackluster in terms of a global rally stalling on wall street. in particular some highflying rate sensitive stocks pulling back, even as we see the bond market edging higher on the forecast of lower rates. we could yet see a set up for a bit of a rally as we count down the end of trading days going into the holidays. we're seeing nasdaq futures little more positive. the market opens next. ♪

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>> we could see a little bit of

pressure coming from the wall street session, the s&p 500, the treasury rally continuing here in the u.s., a global bond rally spark by the fact that u.k. inflation slowed down. >> we do have major markets here in australia about 2% away from a record high in japan, we are looking pretty elevated, we will have to see if there's enough drivers to push it over the point where we get into the holidays. shery: asian currencies could dampen the -- u.s. dollar holding, the nikkei under pressure by more than 1%. as you said, it's really close to that 33 year record high, the highest level already since july and were following the 10 year

jgb because it's fallen to the lowest level since july when the bank of japan tweaked its you'll curve control plan. we might see more pressure on the yield space as well. take a look at how the kospi is coming online after gaining ground in the previous session. the downside of .6%, and the korean won weakening pass that 1300 level. the expectation right now is for the won to trade around those 1300 levels. given that we have the boj and the fed out of the way. we are getting the export numbers for the first 20 days of the month and we are seeing that exports rose 13% year on year which would be a big acceleration from gains of 2.2% in the previous 20 days of the previous month. when it comes to the year on your number for imports, 9.2%

for the first 20 days of december but it looks like perhaps the picture is brightening when it comes to the trade picture in south korea. we have seen the bottoming out of the price for semiconductors and the trade surplus coming in at one point six boozman dollars as well. -- $1.6 billion as well. haidi: trading underway for about an hour or so in australia, a pretty lackluster picture with concerns over where the fed pivot goes from here. it's a market trading at very elevated levels, 2% away from that record high. a lot of big trading teams like tech and austria up almost 30% on australia. a couple of segments trading in

the green, industrials are doing ok, utilities and health care with modest gains in this part of the session. the aussie dollar, little bit of weakness in the greenback is benefiting the aussie trade. a lot of that will depend on the direction of the iron or traits going into next year and how the china recovery continues to play out. we are also watching the crude story there. there is a disruption when it comes to the red sea, and the idea that perhaps it will take a few weeks for any kind of operational task force to get underway to be able to address some of those disruptions. the red sea risk is being overshadowed by rising u.s. supply. adding to the crude glut and that is the big story when it comes to energy at this point, as we continue to see the situation in the red sea and how

that unfolds and if it continues to worsen. for treasuries at the moment, this is the picture across the spectrum. treasuries this week rallying with global bonds being lifted alongside a rate cut, but a little bit of a move there as we see a downside for risk this thursday. our next guest expects 2024 to be a challenging year growth wise that will make deeper earnings declines as well. always great to have you with us. looking ahead to what 2024 has in store, the great central bank pivot story or the pivot trade -- fed pivot trade, do you think expectations are down? >> they are racing further ahead

than the fed would like to see. the fed would like to see the market come back toward three cuts next year, but really what we tend to see historically is the fed gets to the point where they pause, and you look ahead six or 12 months and they have cut deeply, not just by three or six cuts, we are talking three percentage points or so. i think the market is moving in the right direction, but over the next few months you will see the fed pushing back and trying to rein the market in. haidi: where do you see sector rotation benefiting as we go into next year? the popular trade at the moment is that the fed will pull back on the reins. we could see growth sensitive tech adjacent ai trades continue to rally. >> that has been the story for

most of this year and could continue through the early part of next year. it ultimately, this really strong rally we've seen will come up against the fact that the economy is slowing and growth is slowing and inflation is slowing. in the fundamentals for these companies, sales growth is falling rapidly. the only thing holding it up at all is a little bit of market expansion and that we challenging to hold onto through an economy that is moving toward at least a soft landing, but probably something a little harder than than that. if you look back, it's really normal for the market to reach new highs after the fed pauses. so we might see little further run here but ultimately it does run into the challenge for a slowing economy and i expect next year we will see the market really capitulate to that slowing fundamental story.

and that is looking pretty vulnerable now, given that rally. haidi: so you would prefer to keep that protection and treasuries? >> when you look at the vulnerability in equities, were looking at 20 plus percent rally this year and that's not earnings driven. so you want to take those gains, lock in profits, rotate toward safety, and by that you are really looking at treasuries. although we've seen a strong rally over the last month or so in the u.s., that has further to go. the yields are still pretty attractive. good income if you lock it in now. but importantly, you're getting some great downside protection if we do see the economy give way to something a little softer next year. there is still time to lock in some of the gains in equities.

to position for more resilient portfolio in 2024 so you can ride what is going to be a pretty volatile year. haidi: let me ask you about the outliers, china is one of them. a lot of times historically we've seen a lack of correlation with chinese risk assets being official. cannot still play out, given how cheap valuations are? are you convinced recovery will be underfoot for next year? >> it's a challenging market for investors to step into. it's driven by geopolitical risks and we've been speaking a lot with investors in hong kong and china and they are seeing close out particularly from large investors out of china and that is reversing a trend that we saw for many years. there has been a lot of monetary

policy, a lot of fiscal policy and the cumulative impact to starting to come through. growth will get around that by percent target. fundamentally there is a pretty positive story, not just for china but for the rest of the world. we think the u.s. will slide toward recession, china will hold on to monetary and fiscal policy if and when that happens. so you get a positive economic story, but the catalyst for foreign capital moving into those chinese equities do look like they offer good valuation right now, has got to be on the geopolitical side and that could be some way away. haidi: do you like japan after this world beating rally in 2023? >> it has performed well in this has been a realization that structurally, japan is doing

broadly the right thing. we're starting to see corporate governance improvements, improvements in the labor force. directionally that is something that has been required for many years. we are starting to see inflation and what we need to see is the removal of a negative interest rate policy which is damaging broadly for the banking system and the economy. if all of that place through, then there is some scope for japan's rally to continue. the big challenges for the boj to get that policy out of the way soon, before the u.s. slides into recession. they will then find themselves being question from a structural point of view. that needs to be done sooner rather than later to allow those equity markets to continue to rally. haidi: always great to chat with you.

so much of the risk and uncertainty he was talking about comes down to what we see in the data and how the central banks react to that. this is one reason fed chair powell spoke about the cuts at bloomberg economics is expecting when it comes to the data that we see, including the jobless numbers. this will be the focus point. gdp is likely to show a burst of activity, when it comes to pce, calls have come in flat, and that 2% will be what we see on a six-month annualized basis. that hits the fed target for the first time since the 10 dacian -- pandemic driven inflation to cold. we do have those initial jobless claims continuing to run low into mid december.

claims declined in most states in the previous week so that will add to the broader picture in terms of what we expect from the fed. it is that inflation print that was so why the research of focus by chair powell talking about the outlook for cuts. shery: before we get to those economic numbers in the u.s., we have an important rate decision coming from indonesia. the expectation is for hold at 6%. the rupiah has remain pretty vulnerable, so bank of indonesia will probably stay put, according to 29 economists surveyed by bloomberg. we have already started to see the markets have the idea that the michael turner more dovish, so those dovish bets are rising. still ahead, revenue rebound could be insight for the cows casinos next year with bloomberg

intelligence estimating it might surpass pre-pandemic levels. we will look over the numbers, next. this is bloomberg. ♪

shery: we take you to like comments coming from the argentinian president which is being broadcast on national tv. is now saying he signed a decree to deregulate the economy. this takes argentina in the step to eventually privatize state run businesses. it's a second step in his economic overhaul, shortly after

taking office. this is an economic shock package, as it has been described, including forms to tax on labor laws, political processes, and potential privatizations. saying the cause of argentina's crisis is fiscal deficit. we saw his economic minister devaluing the peso by more than 50%, overhauling its peg and announcing massive spending cuts to eliminate the country's deficit. you're watching those present -- pictures from the argentinian resident with his second steps in an economic overhaul for the country, announcing broad reforms to deregulate argentina's economy. haidi: bloomberg has learned that bytedance sales topped $110 billion this year, potentially overtaking rival tencent. john, of course these numbers

are not easy to come by, but they do give us insight into just how strong the momentum for this business continues to be, even as we know about the woes in terms of china's economic slowdown. >> i think that's right. i think it speaks to how good of product bytedance has when it comes to tiktok, when it comes to the chinese version of that. not only and how addictive they can be for users, but how good they can be in terms of e-commerce, getting people to spend. we've seen that here in china, word is pushing revenue at bytedance to potentially pass tencent. it's not just the economic situation here in china, bytedance is the most international company here in china. with the user base in the u.s.

and europe, it makes it more insulated to downturns here in china. shery: we know that tiktok faces some security challenges, so how big of a challenge will this be for bytedance in the future? >> i think it will continue to be a problem as long as the bilateral problem between china and the u.s. remains intense. it does not seem to be stopping the company's growth, at 110 booming dollars, it's growing at about 30%, a little faster than it grew in 2022. we don't have the level of financial incentive it would for a publicly traded company, but we do know that 2022, the financial times reported that earnings after interest, taxation and amortization and appreciation was about $25 billion u.s.. that on revenue in excess of $80

billion, so you can extrapolate how it is doing on a larger revenue base this year. shery: we are setting up for the chinese markets open in about an hour and watching the shanghai composite index as it enters a fresh three year low. the level to watch is 28.86 for the shanghai composite. since the beginning of november, remember when we had that high a month ago, given that we had hopes of large stimulus packages coming from beijing policymakers among which we didn't get from the annual economic conference. so it's been a difficult month of december. haidi: we are hearing the government may look at a moderate amount of fiscal stimulus next year and that doesn't seem to be the kind of kitchen sink approach that investors have been looking for

in terms of finally getting this catalyst to turn the market around. isaac saying it's a difficult market to gauge the bottom of, particularly as a foreign investor which is why a lot of things are staying away. toyota falling as much as we are seeing, recalling a million vehicles in the u.s.. this is the stock reaction, as much is 5.6% after recalling a million vehicles in the u.s.. this is we continue to see moderation, down about 3.5% at the moment. recalling that number of vehicles at risk of having passenger side airbags failed to deploy properly due to a passenger seat since her issue. that statement came out on wednesday affecting certain

2020-2020 two model year gas and hybrid vehicles, with a number of models being listed there. so toyota stocks seeing a bit of a negative reaction. you can follow more on all the market action on the bloomberg. there is commentary and analysis from our expert editors. this is bloomberg. ♪

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haidi: the biden administration is renewing efforts to pressure israel to end the widescale destruction in gaza. secretary of state antony

blinken says israel's campaign needs to shift to a more precise operation to reduce the toll on palestinian civilians. the health ministry says israel has killed more than 19,000 palestinians in gaza. >> it's clear that the conflict will move and needs to move to a lower intensity phase, and we expect to see a shift to more targeted operations with the smaller number of forces, that is focused in on dealing with the leadership of hamas, and the tunnel network. haidi: the violence is spilling over into the red sea. over 100 container ships are taking the long, more costly route to avoid attacks by rebels.

this as the militants vowed to continue targeting vessels in response to the war. su keenan joins us with the latest. what are authorities doing about this? su: the u.s. is trying to get together with other allies to create a task force that will somehow protect these vessels at risk. and yet the rebels have issued a counter threat morning the u.s. is going to retaliate if the u.s. acts. the attacks in the red sea have ramped up in a big way in the past weeks. you are looking at a helicopter that landed on a cargo ship. you had a number of armed rebels in a coordinated attack take over the ship, holding the crew at gunpoint. they have been using drones, missiles and these assault teams in their attacks. so it is not yet clear how the u.s. will respond.

in addition to forming a task force with allies to protect the ships, it's weighing military strikes, while still preferring to use diplomacy. meanwhile, saudi arabia's warning that any strikes against the rebels will provoke the hou this who have proven their ability to disrupt or damage critical infrastructure. shipping rates and the shares of shipping companies have been on the rise, more than 100 container ships are taking the long route around africa to avoid violence in the red sea. that's causing delays above to 10 days, and some of the shares in the red right now had risen to a year and a half high before selling off a bit on the crisis. insurance rates have skyrocketed for the ships that do cross the red sea. at least when shipping company

has told us the chaos is resulting in a ramping up a business in a very big way. haidi: that is offsetting concerns about shipping disruptions, the oil glut. su: west texas intermediate is lower after barely holding on to three day gain. trading was very volatile, swings of more than two dollars in either direction. the latest data shows oil inventories rose again even as exports picked up and record production levels, the increase comes despite a decrease in the number of oil rigs that week. brent crude is higher in asian trading, there is a mix of opinion but the pace of u.s. output to add to this concern about global oversupply is real. a senior energy trader says the

market is mainly short and sentiment is poor. she does not think the bears are abandoning their belief that the market will be imbalanced and oversupplied by the end of this year and going into next. haidi: su keenan their private much more to come here on "daybreak: asia." this is bloomberg. ♪ 202 pounds on golo.'ve lost so the first time i ever seen a golo advertisement, i said, "yeah, whatever. there's no way this works like this." and threw it to the side. a couple weeks later, i seen it again after getting not so pleasant news from my physician. i was 424 pounds, and my doctor was recommending weight loss surgery. to avoid the surgery, i had to make a change. so i decided to go with golo and it's changed my life. when i first started golo and taking release,

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haidi: this is a picture cross asian trading, unsurprising, given the global rally, we're seeing the pullback carried through in the asian session as well. the nikkei to 25 down by almost

1.5%. the kospi up by about .25%. it might take a little bit more momentum for us to be able to get to those levels. the same story when it comes to australia, about 2% away from a record high trading on the asx 200. only a couple of sectors trading modestly in the green in this session. since apprising numbers when it comes to an increase in immigration that -- we're also watching jgb, taking a bit of a slide there as well. it had been softer on the thursday session on report that the trade union could be

negotiating up the minimum wage, higher potentially than the government's target. it has been a busy year when it comes to dealmaking. shery: a new report shows that when it comes to volumes, they dropped 8% in 2023, and the rib reports saying the ipo landscape has shifted with investors turning more optimistic on? it's as china slows down. take a look at the breakdown, the number of deals in the u.s. rose by 15% with proceeds up 155 percent from last year. in the asia-pacific, ipo activity fell 18% on the year although it remained a leader in terms of volume. new hotspot markets including india and thailand, a record number of ipos outpacing the usual regional power houses. let's get the outlook of the

global ipo market in 2024 from george, great to have you with us. i just said the u.s. led the ipo market this year, but at the same time the gains were really marginal. will the picture be a little more favorable in 2024, given were expecting these dovish pivots from major central banks? >> thank you for having me today. in a nutshell i do think the ipo market is going to pick up gradually in 2024. like you mentioned, the expectation is the fed will cut the interest rate in 2024, but we do not expect it to do so in the first half. mostly the ipo activities will be timed to react to that action , so do expect the ipo market on a global basis will recover tour the second half of 2024.

in spite of the economy doing quite well, and like you mentioned, we've seen the pickup in the volume of the ipo, but on the other hand, most contributions were by the smaller companies. companies are still waiting for the market to get warmed up, and also watch out for the outer market performance of the ipos it happened in 2023. shery: it's interesting the market dynamic we're are seeing in ipos. there's so much focus on monetary policy, we've seen the market outperform this. so what is going on? >> i guess the investor appetite has shifted from pursuing high-growth companies to profit generating companies, the companies with good fundamentals. this is a of the monetary and fiscal policy and plummeted by

various countries. going forward, i think it will be very important to bridge the gap between investor expectation on the valuation with the ipo candidates in order to kick off the increase in investor sentiment. shery: we had some eye-catching tech listings this year. is at the sector that will lead again in 2024? and what happens, given that we saw that aftermarket performance be really underwhelming in 2023. >> tech i believe will still be the leading industry, and certain developed countries, for example the u.s. and china, is also heavily pipeline with tech companies. on the other hand, the emerging

market, with satisfactory growth in gdp, we're seeing a pipeline in the consumer areas well and the energy sector. these are all the major sectors we expect companies will look at in 2024. shery: why are the small-cap companies outperforming the larger caps? will that continue into next year? >> i think in the first half of the year it will continue. the reason for more small camp -- small-cap is the alternative for financing is narrowing, the small-cap companies mainly reside in the emerging-market with quite satisfactory gdp growth. in their performances pretty ok, so as i mentioned before, investors are looking for healthy, strong fundamental

companies to invest. not surprising with the profitability of these small-cap companies, the aftermarket performance would be quite satisfactory as well. shery: emerging markets are doing ok, but that doesn't necessarily reflect what china is doing. any hope for mainland china and hong kong, given what a bad year 2023 has been? >> we are still hopeful that the market in china and hong kong will pick up. in china, the reason for the 2023 cool down is because of the periodic tightening policy or approving new ipo's to boost liquidity of the china stock market, and also bring direct funding to encourage technology industries. if this works, and we're hopeful to see a relaxation of this policy toward the second half or the fourth quarter in 2024.

regarding hong kong, the main reason was basically interest rates were high and liquidity was low. and valuation was low as well. but check -- the chinese government, they are looking for alternatives and hong kong would be on their priority list come pretty much top one or two. so given the interest rate is going to gradually come down, we expect the hong kong market could pick up its momentum toward the second half of the year. if not earlier. haidi: given what you seen in 2023 for there is ipo candidates who wanted to go public next year, what are some of the things they should be prepared for? >> i think they should be very ready, we got a very narrow window. they also have to make sure the fundamentals are strong, the

need to tell the investor a story so the investor can understand the fundamentals. for example, they need to convince investors in the long run they're going to give them a return on investment, and also they would need to have good corporate governance as well. shery: george chan, thank you so much for joining us today. looking ahead to the ipo activity next year. haidi: when it comes to gaming, a rebound in revenue, bloomberg intelligence analyst say they could pass pre-pandemic levels in 2022. a senior research analyst joins us now. talk to us about the recovery speed of macau's casino revenues and how we are seeing the change in diversification of their business playing into that. >> i would say the gaming

revenue of macau is improving very well. investors are going after companies, next year they're expecting gaming revenue to recover another 22% revenue growth, to prepare -- 75% of pre-pandemic levels next year. compared to -- that's one thing, they have properties offered and when they ramp up i think that could be the leaders of the sector. shery: as you said, gaming revenues not necessarily

returning to pre-pandemic levels. should we be concerned about these companies financials or even their balance sheet health? >> i think the gaming revenue is somewhere around 75%. in terms of ebitda, it's going to return to 91% of pre-pandemic levels. before the pandemic, the ebitda margin was around 25% but now it has surpassed 35% and will go higher. the profitability of the sector has improved and also some companies are going to report a higher dividend next year. so i would be worried about the cash flow issues of these companies. haidi: what sort of catalysts

should investors be paying attention to now? >> as the macau gaming segment is becoming -- given we think macau casinos will try to capture more growth during the holidays, for example christmas or new year's or even lunar new year. in the past, the lunar new year was supposed to be the most important holiday for macau casino. it's not like a chinese holiday. we are seeing there are so many new properties having new events. they might be hosting some tv channels, so for those events it will draw more traffic. people will buy tickets to

participate in these events. so we expect the december number will be good. this month we are expecting the gaming revenue to recover to 74% of the whole pre-pandemic levels already. macau is not just a gaming center, but it is a place where young people can go to enjoy trips and events and see what is going on their. shery: good to have you with us. we have more to come. this is bloomberg. ♪

shery: the argentinian president has announced broad reforms to deregulate the country's economy. is also planning steps to eventually privatize state run businesses. bloomberg's patrick gillespie joins us from bring osiris. we were expecting more from -- from buenos aires. >> good evening, he is doubling down his efforts to fix the

argentine economy through shock therapy measures. in recorded address with his entire cabinet behind him, he outlined 30 measures on a full package of 300 policy changes that have a sweeping range of subject matter. some real estate, technology, agriculture, it's a one-size-fits-all fix for the economy. they are not accustomed to this type of shock therapy. haidi: was it announced that elon musk might be involved? >> yes, he said he wants to inform argentina's laws and

specifically mentioned elon musk , as something is trying to get done here in argentina. this is a gesture that he wants him to come to the country, that is something they have talked about. while privatizing all of argentina straight run -- state run companies. there's bound to be criticism from powerful labor unions. shery: we have seen the market reaction being swift. the argentinian benchmark trading at the highest level for three years. i have to ask, we've seen so

many instances in the past of exuberance about argentina. how sustainable is this? >> it's a great question, he is already benefiting from the market reaction. he's getting support from washington, from the u.s. treasury and the imf. people are talking about 25%-50% monthly inflation. it could be a very difficult time for citizens who are already dealing with inflation. he is moving as fast as possible

and trying to prevent hyperinflation. shery: patrick gillespie with the latest. we have more to come. this is bloomberg. ♪

shery: you are watching "daybreak: asia." china is inspecting to reach his goal of having new energy vehicles account for all sales by. there's an unwelcome side effect, expired batteries full of toxic chemicals. paul allen has more on how china is trying to taxable problem. paul: with the right equipment and know-how, pulling apart an electrical -- electric vehicle battery for recycling is relatively easy. this is one of the largest recycling companies in china and processes about 10% of the countries spent ev batteries. there is no shortage of material for competitors to work with, but also fueling ways. one of the worst examples being the notorious ev graveyard filled with vehicles that quickly became obsolete after they hit the road. >> we now pay too much attention

to manufacturing cars and batteries, but it causes massive raw material usage and a large amount of battery disposals, which imposes challenges on later stage processing. all: it can be a lucrative business as well. it has seen its recycling revenue quadruple since 2021. there's a government list of 150 key industry players. smaller players are willing to pay higher prices for spent batteries. it's estimated about a fifth of the market is unregulated, lacking the safety equipment to minimize the risk of explosion and releasing toxic wastes. policymakers are working on the problem, but for now industry watchers say there is no

enforcement to make sure the best practice is the only practice. paul allen, bloomberg. haidi: about one me -- one million vehicles are being recalled that are at risk of having passenger airbags fail to deploy. what do we know and what is being affected? >> it seems to be about a million cars being built between 2020 and 2022. it seems to be a sensor that senses passenger weight and it would stop the airbag deploying in certain circumstances. shery: a million vehicles iren the u.s., what is the actual business hit to toyota? >> it sounds like a lot, a million cars, but you have to

remember toyota shares millions of cars a year so it is only a small portion of that. as well as the recall in the u.s., the other scandal that is percolating in japan, where daihatsu came out and said it had to dispense shipment of all its cars because they've been falsifying safety data there. so that could potentially be the bigger hit to toyota at the moment. it accounts for about 4% of toyota groups annual revenue. if it becomes a problem, shutting down the production, maybe that is what investors are more concerned about at the moment. haidi: how challenging is the modern market going into next year? >> it's looking a bit more challenging. obviously higher interest rates in the u.s. throughout this year

, the fed is signaling the rates may come down, and particularly in the ev space as well, most of the big carmakers including toyota are starting to dial back some of their ev expectations. so it might be a slightly tough year for automakers next year. shery: we will be watching those carmakers across asia, but setting up for the markets in hong kong and mainland china. asian chipmakers, a strong revenue forecast for the current period so watch out for those chinese names. also watch out for asian crypto related stocks, we saw bitcoin briefly jumping back over 44 thousand dollars. right now we continue to see upside on bitcoin prices above

43,000, up .4% at the moment. take a look at how u.s. futures are trading a little bit to the upside, the s&p 500 saw its worst day since september. u.s. consumer confidence rising by the most since early 2021. we will be watching the global bond space as well because we've seen a rally in the new york session. a little bit of a paring back in the asian session but a very elevated levels. that is it from "daybreak: asia." bloomberg markets china is next.

>> good morning it's 9:00 a.m. here in hong kong, welcome to bloomberg markets china open. i'm david alongside